The Courier & Advertiser (Fife Edition)
Government to close lifeline capital grants scheme
Ewing says objectives have now been exceeded, but union hits out
The Scottish Government is about to close a lifeline capital grants scheme for new farm businesses two years ahead of schedule.
Applications for the New Entrants Capital Grant Scheme, which is a key plank of the Scottish Rural Development Programme, will only be accepted for another two weeks.
The popular scheme has paid out in excess of £8 million in the past four years to help more than 600 applicants invest in agricultural buildings, drainage projects, and fencing and livestock equipment.
However, Rural Economy Secretary Fergus Ewing said yesterday the government had now exceeded its objectives.
The move drew criticism from NFU Scotland president Andrew McCornick who said that withdrawing a lifeline to new entrants did not fit in with the dynamic nature of Scottish farming.
He added: “We understand there are budgetary constraints, but new entrants need as much help as possible and I’d have thought they’d have tried harder to prolong this scheme.
“It is always an objective to get more new people into the industry and this makes it more difficult.”
Mr Ewing appealed to prospective applicants to get their applications in before August 31, but Mr McCornick said: “Giving just two weeks’ notice doesn’t give people any time to plan.”
The Scottish Government was the first part of the UK to include this type of grant scheme in a rural development programme and topped it up with the injection of an extra £2m last year.
England, Wales and Northern Ireland have introduced their own versions of the scheme.
Mr Ewing said: “Encouraging new, and younger people to the industry, is of course a priority of this government and we will continue to explore how we can maximise the opportunity for a new generation of farmers and crofters.
“We recently published our proposal document for the future of Scotland’s agriculture, which outlined a number of measures which we believe will encourage new entrants.”